Kanpur, Jan. 22 (PTI): JK Cement will tap the capital market to raise funds for expansion.

The company plans to come out with a public issue next month mobilising about Rs 280-300 crore.

The proceeds will be used to increase the captive power generation capacity and cement production.

“We hope to raise about Rs 280-300 crore through a public offer which is expected in the second week of February,” JK Cement group executive president R.G. Bagla said, adding the draft prospectus had been filed with Sebi.

He said the firm would utilise a little over Rs 200 crore for setting up captive power plants and about Rs 30 crore for increasing the production capacities of both grey and white cement facilities.

Elaborating on the power generation plans, Bagla said the company would install a 13-mw waste-heat recovery power plant at a cost of about Rs 111 crore, and a 20-mw petcoke-based power plant with an investment of Rs 85 crore at its production facility at Nimbahera in Rajasthan.

“These power plants are expected to be operational by 2008,” he said.

“The firm will also replace an existing 7.5-mw turbine with a new 10-mw turbine at Bamania in Rajasthan, which will cost around Rs 8.5 crore,” he added.